Shielding the Poor

"The poor are most vulnerable to economic crises, natural disasters, or health shocks and are least able to cope with their economic consequences. Yet, for the most part, the poor have no access to social protection and insurance mechanisms. The lack of insurance and coping mechanisms may force the poor to reduce food consumption and investment in their children as well as deplete their scarce assets. These responses irreversibly and negatively affect the productive asset base of the poor and their earning capacity, possibly driving them into a vicious cycle of greater vulnerability and deeper poverty." "Shielding the Poor presents a group of studies on social protection in the developing world from leading researchers. These studies address the issue of vulnerability of the poor to adverse shocks and propose policies to increase their protection and coping capacity. The studies emphasize the need for building permanent institutional structures that help reduce and manage to risks that households face as part of a coherent long-term strategy to reduce poverty and promote social equity." "Policy interventions that improve social protection not only help shield the poor from the adverse consequences of shocks but also boost economic growth and reduce chronic poverty over the longer term by reducing the perverse effects of these shocks on the human and physical capital of the poor and on the economic activities that they undertake."--Jacket.